Apollo International Administration is focusing on €1bn (£854.8m) for a European actual property debt technique, PERE has reported.
Apollo Actual Property Debt – Europe Fund I is the agency’s first commingled fund devoted to European actual property loans, in keeping with PERE.
Apollo has been investing in actual property in 2009 and arrange the credit score group in 2013. It managed $48bn in industrial actual property credit score on the finish of 2023, of which $11bn was in Europe.
The brand new fund will goal senior secured, subordinated and entire loans and goal to ship a web levered IRR of 11 per cent. The technique is about to be categorised as an Article 8 fund below the Sustainable Finance Disclosure Regulation.
Apollo declined to remark.
Learn extra: $500bn alternative for industrial actual property personal debt
The €1.5trn actual property finance was as soon as dominated by the banks, however various lenders now symbolize round 39 per cent of the excellent debt within the UK and between 10 and 15 per cent in Continental Europe.
And Apollo just isn’t the one group seeking to profit from the elevated alternative. M&G just lately raised £350m in a primary shut for its actual property debt funds, in search of probably double-digit returns out there from direct industrial actual property loans in Europe.
However there are additionally issues, with some warning that the industrial actual property debt market is nearing a “reckoning” as many loans attain maturity.
Learn extra: Business actual property debt disaster looms as loans mature
Learn extra: M&G closes on £350m actual property debt funds
